Small firms eager to embrace technology

The Solicitors Regulation Authority (SRA) has recently published research that focuses on sole practitioners and small firms in their adoption of new technology and innovation. While the study indicates a strong eagerness to embrace technology among these firms, it highlights several barriers that could impede implementation. Respondents expressed concerns about costs, finding suitable products, and the uncertainty of investing in potentially outdated technology. Remarkably, 82% of those surveyed agreed that technology would enhance the value provided to consumers, yet only a mere 4% believed there were no obstacles to integrating it.

Over half of the participants reported difficulties in finding appropriate technology tailored to their specific needs. Many described the current market as a ‘wild west’ of options, while others could not locate a product that suited their business model. An additional concern is that one fifth of respondents desire clearer pricing models from technology providers to encourage future adoption.

Carried out by Thinks Insight & Strategy for the SRA, the research involved interviews, workshops, and surveys with approximately 150 solicitors, as well as eight interviews with technology providers. It examined how smaller firms are utilising, implementing, and integrating technology into their operations while identifying barriers to innovation.

The results indicated that law firms providing services to individual consumers found it more challenging to assist clients in using technology, with 49% citing difficulty compared to 37% among those working with business clients. Legal professionals serving vulnerable or hard-to-reach consumer bases expressed a significant need for support from technology providers when helping these clients.

The findings revealed that while many firms were aware of common technology solutions like accounting and case management software — with 99% awareness for each — the adoption rate for artificial intelligence (AI) remains moderate at just 14%. Though firms showed a willingness to engage with AI technology, they expressed the necessity for more information to ensure safe and effective utilisation.

Concerns about the longevity of tech products were prevalent, with 72% of surveyed firms worried about investing in technology that might soon become obsolete. Paul Philip, SRA Chief Executive, stated that ‘the use of technology in legal services is advancing at pace and there is a risk that smaller firms, who may not have the resources, might get left behind.’ He noted that this research demonstrated small firms’ desire to adopt technology and the benefits it brings.

In support of this, the SRA has a strategic priority focused on fostering innovation and technology that enhances legal service delivery. They aim to help small firms access the right technological solutions, recognising that these firms play a crucial role in providing legal services, particularly to communities outside the major urban centres in England and Wales.

The SRA's innovate programme offers events and resources that empower legal professionals to confidently navigate technological decisions. Among other findings, the study revealed that nearly two-thirds of participants (64%) believe technology can improve access to justice, and a majority (82%) concurred that innovation would enhance client value. Moreover, 24% of sole practitioners and small firms indicated they would require training to facilitate future technology adoption.